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Psychological Safety Can Enable Innovation, Study Says

workers sitting around a table shaped like a lightbulb, illustration

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Psychological safety is an internal resource that managers can leverage to support a firm's capabilities to innovate, according to a study published in the International Journal of Innovation Management.

The empirical analysis by Radoslaw Nowak, an associate professor at New York Institute of Technology, based on data from over 100 U.S. hospitals, expanding the understanding of how business organizations could better utilize their internal resources to positively impact innovation.

The study says that psychological safety will reinforce a firm's capacity to exploit newly created knowledge and increasing its capacity to innovate. Managers can take action to create a non-threatening work environment that promotes risk-taking, information sharing, collaboration, and high levels of employee contribution to problem solving, the study says.

Management could also consider changing a firm's reward systems to generate financial incentives to promote and support desired employee behaviors.

From New York Institute of Technology
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